INF/MSME/R/28  
 
11 October 2021 
(21-7640) Page: 1/4 
  Original: English  
 
INFORMAL WORKING GROUP ON MSME  
OPEN -ENDED MEETING OF 24 SEPTEMBER  2021 
Summary of discussions  
The following communication, dated 8 October  2021, is being circulated at the request of the 
Coordinator of the Informal Working Group on MSMEs.  
 
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The MSME Informal Working Group (MSME Group) met for its fifth open-ended meeting of 2021 on 
24 September . A total of 69 delegations attended the meeting, including 19 non -Working Group 
members (Cambodia; Central African Republic;  Chad; Egypt; Georgia; Haiti; Indonesia; Jamaica; 
Jordan; Lesotho; Mauritius; Morocco; Niger; Thailand; Togo; Trinidad and Tobago; Uganda; 
United  States of America; and Zimbabwe).  
 
1  SUMMARY OF DISCUSSIONS  
1.1.  MSME Group members finali zed and cleared the text of their Ministerial Declaration with 
unanimous support (INF/MSME/W/36). Before approval, Cambodia, a non -MSME Group member, 
made remarks to the Group for consideration about the importance of both addressing the capacity 
constraints for developing co untries to support MSMEs as well as the need for technical assistance 
by these same Members to implement the Group's recommendations.  The Coordinator invited Group 
members to actively pursue outreach efforts in the coming weeks.  
1.2.  Mexico updated the Group on  the progress of development of the Trade4MSMEs web platform. 
More than 300 online resources have been identified for inclusion in the library, over 30 MSME guides 
have been drafted and policymaker guides are currently being developed. Translation of the c ontent 
will begin in the middle of October.  
1.3.  Regarding MC12 events, the Group decided to organize a single open -ended meeting to present 
the Ministerial  Declaration and brief Ministers regarding the work done since MC11, the 
Trade4MSMEs platform and the Digital Champions for Small Business  initiative. Additionally, the 
Group intends to organize an event during the Business Forum to present the Trade4MSMEs platform  
to businesses  and increase awareness about this new resource . A separate, virtual event would be 
held to award the digital champions for small business.  
1.4.  Implementation of the December 2020 package was discussed. As per Annex 1 of the package 
related to TPRs, the Secretariat is putting the final touches to the databas e of MSME TPR provisions. 
The International Trade Centre ( ITC) updated the Group on latest developments regarding the Global 
Trade Helpdesk (GTH). Members were invited to submit, ideally by the end of this year, information 
to feed into the GTH as per Annex 2 of the 2020 package. Under Annex 5 related to implementation 
of the IDB decision, Uruguay reported it is in discussions with the Secretariat. Finally, under Annex  6 
on trade -related finance, C ôte d'Ivoire reported  on its ongoing efforts for a roadmap t o support 
MSME access to trade finance within the Working Group on Trade , Debt and Finance .  
1.5.  The Group received five presentations , three  in the context of thematic discussions and  two 
from international organizations. Based on UNCEFACT's Integrated Servic es for MSMEs in  INF/MSME/R/28  
 
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  International Trade (ISMIT), Brazil first presented their Global Trade Hub to the MSME Group. The 
Global Trade Hub is a public private partnership supported by the UK and Brazilian governments to 
create a digital marketplace for trade servi ces. Canada next presented on their customs procedures 
for low -value shipments, including duty exemptions, the various thresholds applied to these 
exemptions and de minimis  for courier remission import orders. The Coalition to Reduce Cyber Risk, 
which had previously presented at a meeting on e-commerce  negotiations ( JSI), discussed the trade 
issues cybersecurity threats pose to MSMEs and the challenge from unstandardized cybersecurity  
regulations. They noted that if approaches are aligned they can reduce costs and complexity for 
MSMEs as well as increase security outcomes.  The final two presentations from international 
organizations introduced the MSME Group to the UN Global Compact's SME and Africa strategies and 
to UNCITRAL's work on MSMEs. The UN  Global Compact brings private companies together to 
support the ten principles of the compact to protect human rights, labour, the environment and anti -
corruption, but no impact can be made unless the majority of businesses, MSMEs, are included. 
UNCITRAL has established a Working Group to reduce legal obstacles throughout the MSME lifecycle, 
beginning with incorporation. They have also worked extensively on a legislative guide on key 
principles of a business registry, which has implications for simplifying  MSME establishment and 
increasing business formality. See Annex  for brief summaries of these presentations.  
2  NEXT STEPS  
2.1.  The next MSME open -ended meeting is scheduled for 8 November 2021.  
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  INF/MSME/R/28  
 
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  ANNEX  
 
PRESENTATION SUMMARIES  
Global Trade Hub  
Global Trade Hub, a UK -funded project in partnership with the Brazilian government, aims to create 
a digital solution to help Brazilian MSMEs internationalize. The  initiative  is based on UN/CEFACT 's 
ISMIT concept to bring e -commerce trade services together i n a platform for easier MSME access 
and trade in services. The Global Trade Hub will bring together private sector service providers, 
Brazilian federal government agencies and national business associations among others to create 
"The Amazon of export serv ices" for Brazilian businesses looking to internationalize.  The Global 
Trade Hub was implemented in September 2021 and intends to be operational by 2022.   
Canada Border Services Agency  
Canada's low -value shipment policy regarding the application of customs duties can simplify tariffs 
and duties at the border.  Canada has both a low -value threshold of CAD  3,300 and a renewed de 
minimis  for courier remission orders (CIROs) only.  Canada  applies different categories of CIRO and 
postal import remission order (PIRO) de minimis  thresholds for imports depending on their origin 
with exceptions for certain  imports such as alcohol and tobacco. Canada also applies the Generic 
Harmonized System (GHS)  for qualified postal and courier shipments , which is a simplified 
classification process that allows imports to be categorized in one of three generic MFN tariff rates 
provided the value is CAD  500 or l ess. Goods also need to be imported for personal or household 
use and certain goods, including alcohol and tobacco, are ineligible. Overall, Canada has found that 
GHS has a minimal impact on tariff revenue, no impact on sales tax revenue, and it facilitate s the 
processing of low -value shipments.  
The Coalition to Reduce Cyber Risk (CR2)  
CR2 presented to the Group on the importance of cybersecurity for digital trade. Currently there are 
more than 80 different national strategies for critical infrastructure in  place that define what critical 
infrastructure is in scope but do not specify ex ante security requirement or a process and timelines 
for incident reporting. The digital ecosystem is reliant on trust, and cyber -attacks compromise that 
trust. Companies nee d to be able to take an integrated, risk -based approach to cybersecurity, 
however many prescriptive policies prevent firms from doing so. There is also a need by governments 
to follow international standards and best practices because divergent laws can ac t as non -tariff 
barriers requiring companies to duplicate their efforts or even exit a market out of fear of legal 
repercussions. A consistent use of standards can reduce complexity and compliance costs, thereby 
increasing MSME participation in trade, incl uding international trade . Alignment with international 
standards can also increase security outcomes thereby protecting MSMEs which are the most 
vulnerable to cyber -attacks. For examples of cyber language in trade agreements, CR2 noted 
cybersecurity coope ration in CPTPP, the G20 Finance Ministers Declaration, RCEP and the Australia -
Singapore DEA to name some.  
UN Global Compact  
The UN Global Compact gave a presentation on its new strategy to engage with business es of all 
sizes. Given the importance of MSMEs to the global economy, the UN Global Compact has recognized 
that the only way to fulfil the SDGs is to bring these firms on board with  the Compact's  ten principles 
focused on human rights, labour, the environment and anti -corruption. Recognizing the resource 
challenges and everyday business realities of MSMEs, UN Global Compact has implemented digital 
onboarding and benchmarking for MSMEs including an onboarding readiness tool along with tailored 
programming tools like playboo ks, accelerators, and peer learning groups. The UN Global Compact 
has also recently developed an Africa strategy focused on SMEs in the region. The se strateg ies will 
focus on local resources through the UN Global Compact's Local Networks to increase SME 
engagement and provide on -the-ground support for sustainable development.  INF/MSME/R/28  
 
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  UNCITRAL  
The United Nations Commission for International Trade Law (UNCITRAL) gave a presentation on the 
legislative guides on business registration and limited liability enterprises,  both of which have 
important implications for MSMEs.  These legislative guide s join a host of UNCITRAL texts that apply 
to the whole of a MSME lifecycle, including UNCITRAL arbitration rules, technical notes on online 
dispute resolution and UNCITRAL Model Law on Secured Transactions. The new legislative guide s 
came from work by UNCITRAL's Working Group I, which was established in 2013 to work on reducing 
legal obstacles throughout the lifecycle of MSMEs. Key features of the new legislative guide  on key 
principles of a business registry  are easy access to information, such as making registration 
information easily and publicly accessible (including across borders); creating a fully electronic 
process with all information located in one online location; provid ing guidance on the registration 
process as well as preservation of records for future access; and finally an improved registry system 
with regularly updated information and unique identifiers for users. For the legislative guide on 
limited liability enter prises , legislators sought to create a flexible business form that could be tailored 
to MSMEs and that could be supported by stand -alone national legislation. Ultimately, these 
guidelines look to benefit start -ups and informal MSMEs who are looking to join  the formal economy.  
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